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November 13, 2008

Dairy Farmers Shareholders Approve National Foods Takeover Bid

by Sam Savage

Australian Co-operative Foods, or ACF, which trades as Dairy Farmers, has announced that its shareholders have approved the National Foods proposal to acquire all of the shares in the co-operative for a cash consideration of A$5.65 per share.

Ian Langdon, chairman of ACF, said: "Following this successful ballot, a court hearing will take place on November 18 to seek approval of the scheme. If court approval is granted at this time, it is proposed that the scheme will be implemented on November 26 at which time ACF members and qualifying former members will be paid their entitlements.

"In addition to achieving at least 75% support of those ACF active members that voted, the National Foods proposal also required Dairy Farmers Milk Co-operative (DFMC) to enter into revised supply contracts with new or existing suppliers until at least June 30, 2010 for minimum specified milk volumes by region. In this regard, I'm confident that DFMC will successfully secure the prescribed minimum milk volumes required by the National Foods proposal."